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Flash Crash in Crypto-World as China Plans Crackdown on Exchanges

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Flash Crash in Crypto-World as China Plans Crackdown on Exchanges

Introduction

This article was posted on Friday, 17:09, UTC.

The major coins fell in synchronized fashion yet again an hour ago, just after the market recovered at least some of the ICO-ban losses. The move was triggered by another Chinese regulatory crackdown this time on the crypto-exchanges that threatens (Chinese source: Caixin) with the closure of local exchanges. While the segment was already ripe for a major correction according to the long-term technical setup, the double legislative blow from China fast-forwarded the market, and the likes of Ethereum, NEO, Bitcoin, and Litecoin fell by double digits in a matter of minutes, with the rest of the sector also heading south.

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ETH Crashing After The Release

Volatile conditions are likely to persist, as the crackdown on exchanges could have ripple effects throughout the market, and coupled with the technical vulnerability, major support levels could fall triggering stop-losses and another wave of selling. That said, the exact details of the new rules are unknown and the initial reaction of the market might be exaggerated.

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NEO Dump and Pump

NEO was once again in the epicenter of the move, falling by 30% before recovering a large chunk of the decline, and the moves in the deeply involved token could be good to assess the damage int he coming days. What seems certain, is that cryptocurrency traders are in for yet another busy weekend.

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Mate Cser

Mate Cser

Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

Comments
  • user

    AUTHOR gmaytorena

    Posted on 5:14 pm September 8, 2017.

    On your last paragraph “…in the deeply involved token could be good to access the damage int he coming days.” Did you mean assess? instead of access.

  • user

    AUTHOR Chris G

    Posted on 5:51 pm September 8, 2017.

    Glad I closed my short positions yesterday, sheesh …

  • user

    AUTHOR fermera_dany

    Posted on 2:45 pm September 9, 2017.

    What can you say of a guy who entered the NEO most recent up move somwhere in the middle, but now already losing. Shall I sell back and forget in order not to lose a lot… ?Shall I wait for shake off and take my profit….? How likely are these Chinese bans to happen?

  • View Comments (4) ...
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